OpCapita Offers To Buy Out GAME Lenders

And we're safe. Right?

TSA Staff, 3 years ago, 15 comments.

The Times (via MCV) is reporting that OpCapita are offering to buy out GAME’s lenders, effectively – if we understand this correctly – writing off a good chunk of the recent bad news.

The offer would also include paying any outstanding payments owed to suppliers.

GAME haven’t made any official statement on the offer, but share prices have started to rise over the day, and are currently around 70% higher than they were this morning.

“OpCaptia sic, which bought Comet for £2, has offered to buy out Game Group’s lenders in a move that offers a lifeline to the struggling retailer,” says the paper, calling it a ‘rescue plan’.

The deal from OpCapita would certainly make a formal deal from the likes of Walmart (or GameStop) more enticing for them. Hopes are high, then, for the 6,000 staff currently employed.

Note that this isn’t automatically saving GAME, or buying out the retailer – see: Comet.

Update: MCV has a quote directly from the horse’s mouth, so to speak. Game Group issued a statement which said:

The Board of GAME confirm that a third party has shown interest in providing additional funding for the company. The third party is seeking a dialogue with the Group’s current lenders, however there is no certainty to the outcome. At the same time, the Board remains in its own discussions with its current lenders as it continues to conduct a review of its business and assets
It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company.

As the offer including covering GAME Group’s debts they probably want to get this done quickly, but with other parties interested it will probably draw them out of the woodwork to make rival bids too.

Anyone who bought shares when everyone was dumping them yesterday or today before this news is laughing.

And for all the criticism or laughs about GAME’s plight, they still took over a billion through their tills last year and have 19m reward card customers, a company who makes the correct decision in the boardroom could make a shit-ton as they turn it around.

Also Comet is very keen on customers playing with products in their stores, something that’s been missing from gaming retail for far too long.

Game have hacked off a lot of people down through the years, the extensive discounting requests are the straw which appears to have broken the camels back on that front. Not saying much but Game haven’t really been massively supportive of certain suppliers, publishers or products down through the years – you know the old saying, be careful who you kick on the way up! Trouble is the likes of EA & Activision don’t “need” Game – their key products would frankly sell from Specsavers if they wanted to supply them, individual retailers even the size of Game are unimportant when you’re talking about the likes of FIFA, Tiger Woods, Call of Duty, World of Warcraft!
Edward from [don’t post links, please]

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